By Akanimo Sampson
FSD Africa’s Director of Capital Markets, Evans Osano, says Islamic finance will unlock significant growth-inducing capital from market participants keen on ethical investing in West Africa.
FSD Africa is however concerned with seeking out ambitious financial ventures with the potential to test and drive innovative models that can address market failures.
In partnership with Conseil Régional de l’Epargne Publique et des Marchés, it is already developing a regulatory framework that will help to establish an Islamic capital market in the West African Monetary Union (WAMU) region comprising Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo.
The emerging Islamic capital markets will work to spur growth in the region and increase financing of the Union’s economies.
FSD Africa’s support is coming as part of its ongoing programme to strengthen Africa’s capital markets.
The programme is centred on the development of capital markets master plans, conducting institutional capacity assessments, and creating capacity for sustainable finance such as green bonds, helping markets to adapt to their operating climate.
According to Osano, ‘’we must ensure that financial systems are as relevant as possible to their local operating context. We look forward to working with local stakeholders to understand the needs of the capital market ecosystem in the region as we implement this ambitious programme – a first for the region.
‘’Islamic finance will also foster inclusive finance amongst a vast majority of the population in the WAMU.”
